There appears to be a lot of negative sentiment with regards to the private aviation industry in China. With this in mind, let us take a look at the subject and make an informed conclusion.
We are all aware that private aviation continues to be one of the world’s fastest-growing industries; however China stands out as an exception. They have been experiencing a significant downturn in its private jet market. Once the largest hub for business aviation in Asia, China has seen a sharp decline, reflecting broader economic and policy changes.
The number of private jets based in mainland China, Hong Kong, and Macau has fallen by one-third since its peak in 2017. In stark contrast, private jet ownership in the wider Asia-Pacific region has grown by 20%, with India, Australia, and Japan emerging as key players in business aviation.
Key Factors Behind the Decline
Several economic, political, and social factors have contributed to the downturn in China’s private jet sector. These include a slowing economy, a real estate crisis, stricter government regulations, and the lasting impact of COVID-19. Meanwhile, other Asian markets, particularly in India and Southeast Asia, have thrived due to sustained economic growth, foreign investment, and rising wealth.
Economic Slowdown & Real Estate Collapse
Over the past five years, China’s economy has lost momentum, shifting away from the rapid expansion it once enjoyed. Economic uncertainty, lower GDP growth, and rising tensions with Western trading partners have led wealthy individuals and corporations to cut back on luxury spending, including private jet purchases.
Additionally, China’s real estate sector has faced a major crisis, most notably with the collapse of Evergrande Group in 2021. As one of the country’s largest private jet owners, Evergrande’s financial downfall forced asset liquidations across the real estate sector. Many high-net-worth individuals and corporations followed suit, selling aircraft to improve liquidity and reduce costs.
Government Scrutiny & Regulatory Challenges
China’s ongoing anti-corruption campaign has also played a role in the decline of private jet ownership. Private aviation has long been associated with extreme wealth and corporate excess, making it a target for government scrutiny. Many executives and officials, once known for using private jets, have shifted to more discreet travel options to avoid drawing attention.
Additionally, stricter regulations on capital outflows have made it harder for wealthy Chinese individuals to buy and maintain private jets. Some have chosen to move their assets—and aircraft—overseas, to regions where business aviation is more accepted and less regulated.
The Lasting Impact of COVID-19
The COVID-19 pandemic accelerated the decline of China’s private jet market. Extended lockdowns, travel restrictions, and economic instability disrupted demand for business aviation, making it even harder for the sector to recover.
The Popularity of Other Private Jet Markets
As private jet numbers in China continue to decline, many of these jets have been relocated to other Asian markets, especially in Singapore and Japan. Singapore, in particular, has emerged as a destination of choice for relocated private aircraft due to its relatively stable economy and favourable operating environment for businesses. Furthermore, the city has a quickly growing number of wealthy residents, meaning that private jet manufacturers have even larger incentives to expand their presence there. The number of business jets based in Singapore has increased from 400 in 2020 to 2,000 in 2023, a strong reflection of the shift in demand for these kinds of jets.
Singapore is not the only destination to have emerged as a post-COVID hotspot for private jet growth. India has recently been ranked as one of the fastest-growing private jet markets in the greater Asia-Pacific region, according to The Economic Times. The number of private aircraft in India has increased by nearly 25% since 2019. India has continued to experience rapid economic growth, especially in its booming technology and manufacturing sectors, leading to the growth of a new ultra-wealthy class. Furthermore, foreign investment away from China has benefitted India, which has become seen as more attractive to many businesses. India has also been quick to grow its infrastructure footprint, adding new private terminals and other facilities that support business aviation.
But It’s Not All Doom And Gloom!
Continued Market Leadership Amid Decline
Despite a net decrease of 21 aircraft in 2024, mainland China maintains the largest fleet of business jets in the Asia-Pacific region, with 249 jets as of year-end. Notably, 12 additions were made to the mainland fleet during 2024, including six new deliveries, underscoring ongoing demand within the country.
Operational Growth and Profitability
Air Charter Service reported a significant uptick in activity, with its Shanghai office experiencing a 40% year-over-year increase in private jet charter bookings. Similarly, the Hong Kong office saw an 18% rise, indicating robust demand for charter services in these key markets. Additionally, China’s civil aviation sector achieved profitability in 2024, reversing previous losses and marking a pivotal recovery milestone.
Our Conclusion
China’s private aviation market has faced a perfect storm of economic downturns, political pressures, and regulatory restrictions. However, projections suggest that China’s aviation services market is poised for substantial growth, with expectations to become the largest globally by 2043. The ‘Maintain’ sector, encompassing maintenance services, is anticipated to expand from US$19 billion in 2024 to US$51 billion by 2043, driven by fleet expansion and ageing aircraft.
